Buying Guide
The short answer: you can buy a home in Florida with as little as 3.5% down (FHA loan) or even zero down (VA or USDA loans), plus closing costs of 2-5% of the purchase price. On a $350,000 home, that means you need between $12,250 and $24,500 total to close — and Florida's down payment assistance programs can cover a significant chunk of that.
How much you need to put down depends entirely on the type of loan you qualify for. Here are the most common options for Florida homebuyers:
FHA loans are the most popular option for first-time buyers. You need a 3.5% down payment and a minimum credit score of 580. On a $350,000 home, that's $12,250 down. FHA loans are insured by the Federal Housing Administration and allow higher debt-to-income ratios, making them more accessible for buyers with student loans or other debt.
Conventional loans backed by Fannie Mae or Freddie Mac offer 3% down programs for first-time buyers (HomeReady and HomePossible). With a 620+ credit score, you can put down as little as 3%. If you put down less than 20%, you'll pay private mortgage insurance (PMI) until you reach 20% equity.
If you're a veteran, active-duty service member, or qualifying spouse, VA loans require zero down payment and no PMI. This is the single best loan program available, and Florida has a large veteran population who take advantage of it.
USDA loans are available for homes in eligible rural and suburban areas — and yes, parts of Palm Beach County qualify. Zero down payment, low interest rates, and reduced mortgage insurance. Income limits apply.
Closing costs in Florida typically run 2% to 5% of the purchase price. On a $350,000 home, that's $7,000 to $17,500. These include:
You can often negotiate with the seller to cover some or all of your closing costs, especially in a buyer's market or if the home has been on the market for a while.
Florida has some of the best buyer assistance programs in the country. These can dramatically reduce how much cash you need to bring to closing:
Many of these programs can be stacked together. For example, you might qualify for Hometown Heroes plus an MCC, significantly reducing your out-of-pocket costs.
For a typical first-time buyer in South Florida, you can realistically expect to need between $10,000 and $25,000 in cash to close on a $300,000 to $400,000 home. With down payment assistance programs, that number could drop to $5,000 or even zero. The key is getting pre-approved and working with a lender who knows Florida's programs inside and out.
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